Fully Leased Investment in Central Parramatta sells at 3% yield
A free standing investment opportunity with redevelopment upside (STCA) on Parramatta’s “Eat Street” has sold at auction for $9.75 million.
The three storey building at 292-298 Church Street, Parramatta, was sold under the hammer to a local purchaser by Jeff Moxham and Samuel Hadgelias of Ray White Commercial NSW on behalf of a private vendor for a net yield of under 3 per cent.
Jeff Moxham said the marketing campaign for the property attracted strong interest with over 15 contracts issued. The purchasing pool ranged from those looking for an outright investment to those looking to capitalise on the potential development upside at the conclusion of the lease.
Samuel Hadgelias said that there were four interested parties in the room and others on the phone.
“Bidding started at $6 million and with the keen competition it quickly escalated and eventually sold under the hammer for $9.75 million.
“This exciting opportunity is walking distance from a large number of infrastructure nodes and amenities including Westfield Parramatta, Parramatta Train Station and Rivercat Ferry.”
Jeff Moxham, who has been active in the Parramatta market for more than 20 years, believes buyers were attracted to not only the current investment yield and future development potential (STCA) but also the transformation Parramatta is currently undergoing.
The future infrastructure spending pipeline and large scale urban renewal opportunities for the region include the construction of the Parramatta Light Rail Project, the $2 billion Parramatta Square redevelopment, the $200 million expansion of the University of Western Sydney (Parramatta Campus) and the Parramatta City River Strategy.